In a move that could reshape the global rare earth landscape, USA Rare Earth, Inc. (NASDAQ: USAR) has entered a definitive agreement to acquire 100% of Serra Verde Group in a transaction valued at approximately $2.8 billion. The deal, which includes $300 million in cash and 126.8 million shares of common stock, is expected to close in the third quarter of 2026, subject to regulatory approvals. The acquisition adds the Pela Ema rare earth mine and processing facility in Brazil, currently the only large-scale producer outside Asia capable of supplying all four key magnetic rare earths: neodymium, praseodymium, dysprosium, and terbium. These materials are essential for permanent magnets used in electric vehicles, wind turbines, defense systems, and electronics.
The combined entity will position USA Rare Earth as a fully integrated platform spanning mining, processing, metal-making, alloy production, and magnet manufacturing across the United States, United Kingdom, France, and Brazil. This integration is critical for reducing dependence on Chinese-dominated supply chains, which currently control over 80% of global rare earth production. The company's CEO stated that the acquisition strengthens supply chain security and supports long-term growth, aligning with Western governments' efforts to secure critical mineral supplies. The Pela Ema mine in Brazil is particularly strategic, as it is the only non-Asian source capable of producing all four key magnetic rare earths simultaneously.
USA Rare Earth already owns Less Common Metals (LCM), a leading producer of rare earth metals and alloys, and is developing magnet manufacturing capacity in Stillwater, Oklahoma, as well as the Round Top deposit in Texas. The addition of Serra Verde's Brazilian operations creates a vertically integrated supply chain that can serve aerospace and defense, semiconductor, energy, data center, physical AI, mobility, healthcare, and industrial sectors. For more details on the acquisition, visit https://ibn.fm/K46Iw.
The transaction is expected to close in 2026, pending approvals from Brazilian and U.S. regulators, as well as USA Rare Earth shareholders. The company plans to finance the cash portion through existing cash reserves and debt financing. The deal underscores the growing urgency for Western nations to secure rare earth supplies, as demand for electric vehicles and renewable energy technologies surges. By combining USA Rare Earth's existing assets with Serra Verde's production capabilities, the company aims to become a dominant player in the rare earth market outside of Asia. For more information about USA Rare Earth, visit https://www.usare.com/.
